Despite Brexit woes Bet365 sportsbook and casino generated revenues of over £2 billion. Over a 12-month period Bet365 saw revenues climb due to the increase in mobile and in-play betting.
According to their 2016/17 report Bet365 recorded revenues of £2.15 ($2.83 billion). This was a huge achievement for the online sportsbook and casino company. In previous years Bet365 have fallen short of £2 billion. In terms of operating profits Bet365 reported £503 million, this is up 10% on last year’s £465 million.
From humble beginnings Bet365 was formed from a family chain of Stoke betting shops. This family of course is the Coates family. Patriarch Peter Coates first bought the chain of high street bookies in the 1970’s. Until 2000 there were no plans to move the business online. This came with daughter Denise Coates decision to buy the domain. The thing that separated Bet365 and still does is the various markets they cover. This is evident today with Bet365, Bet365 Casino, Bet365 Sports, Bet365 Poker, Bet365 Bingo and more.
Over the years Bet365 have grown their customer base into the millions. In fact, Bet365 claim to have over 22 million customers making them the biggest online gambling company worldwide. Operating in several markets except the US Bet365 has expanded far beyond Stoke-on-Trent. Despite US restrictions Bet365 has found a very lucrative opportunity in Canada. Worth around $15 billion dollars, the Canadian online gambling industry is one of the largest outside of the UK. This also allows Bet365 to operate in Canadian dollars. Operating in Canadian Dollars and Euros shields Bet365 from the fall of the Pound. A full review of Gambling in Canada is available to read on Casinos.co.
Bet365 also attribute their financial gains to the company’s performance at the 2016 UEFA European Championship. During the Euro’s Bet365’s sportsbook saw bets handled increase by 27%. One of the fastest growing areas within sports betting is in play or real time betting. Which is propped up by Bet365’s live streaming roll out. This allows punters to watch matches in real time and watch as their bets come in or go up in flames. Of course all of these coincide with the growth of mobile betting. It is estimated that Bet365 own 24% of the UK market. Front runners being William Hill 38% and Paddy Power 32%. Meaning that despite a growing market share Bet365 are still trailing behind. This begs the question how much of Bet365’s revenue success is down to product improvement and the uptake in mobile betting?
At present the global online gambling industry is worth $44 billion. Currently the UK accounts for $18 billion of that with Bet365 as the largest operator. Hot on Bet365’s tail is Irish Bookmaker Paddy Power and not so bar behind them is GVC Holdings. The reason behind focusing on these three is an old joke, the English (Bet365), the Irish (Paddy Power) and the Scottish (GVC holdings). All three companies have shared a similar journey and face similar challenges. Whilst the US are locked out of the market British & Irish firms have prospered worldwide. Perhaps maybe too much as regulatory body UKGC seek to tighten the strings. Market competition is also at an all-time high forcing various mergers and acquisitions. This market unrest is a direct result of Brexit. Some of the biggest mergers are Paddy Power-Betfair and GVC Holdings – Bwin.party. Speculation on other mergers between Ladbrokes –GVC and William Hill-Amaya. Besides helping to insure against the impact of Brexit, these are also to chip away at online only brand like Bet365.
Bet365 ground breaking revenue is no doubt more complicated than Brexit and in-play betting. With Brexit woes mounting, increased competition and new regulations, next year might be a different story.